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Business > Marketing > Flashcards

Marketing Flashcards

1
Q

How can you segment a market?

A 
Age 
Income 
Occupation 
Gender 
Hobbies 
Marital status 
Sports
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2
Q

Benefits of market segmentation

A

Firm will get better overall idea of who their customer is (better customer profile)
Firm will get better understanding of customers needs and wants
Firm gets idea of where customers shop
Firm gets idea on how to price product
Firm will be able to advertise product in right location
Firm can make changes to product to suit customer needs
Firm will be able to research a more specific market for their product

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3
Q

What is market research?

A

Once firm has selected market, they will then want to find out more about their customer and so do market research

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4
Q

What are the two types of market research

A

Field research (primary research) and desk research (secondary research)

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5
Q

What is field research?

A

Research that is being carried out for a firms own specific purpose eg postal survey, telephone survey. First hand info

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6
Q

What is desk research?

A

Research that has already been carried another firm eg sales report, newspaper

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7
Q

What are the types of field research?

A

Telephone surveys, street surveys, postal surveys, hall tests, group discussions, customer audits, observation, test marketing, EPOS

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8
Q

What are the advantages and disadvantages of street surveys

A

Adv
Cheap to undertake
Responses can be clarified
Can select respondent by visual means

Disadv
Response rate - low
Interviewers have to be trained - costly
Interviewer may be biased

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9
Q

What are the advantages and disadvantages of postal surveys?

A

Adv
Wide area covered
Cheap to undertake
Can target certain location

Disadvantages
No guarantee that respondent has filled in survey
Response rate low

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10
Q

What is test marketing (market segmentation) ?

A

Process of breaking the market down into groups of customers with similar characteristics

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11
Q

What are the advantages and disadvantages of telephone surveys

A 
Advantages 
Responses immediate 
Wide geographical area covered
Cheap to carry out 
Can be undertaken by computers 
Questions can be clarified

Disadv
Customers see it as intrusion
Response rate low

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12
Q

What are the adv and disadv if hall tests

A

Adv
Opinions and attitudes can be collected
Consumers behaviour can be observed and analysed
2 way communication can be undertaken so points are clarified

Disadv
Consumers influenced by peers and so comments are in line with dominant member of group
Difficult to analyse opinions collected

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13
Q

What are the types of desk research?

A

Reference books, newspapers, Keynote reports

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14
Q

What are advantages of the type of desk research

A

Wide range of sources so decisions more informed
Info is cheap
Competitors information can be accessed
Saves time by not carrying out research

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15
Q

What are the disadvantages of desk research

A

Competitors get access so info not unique
Info often out of date
Difficult to test accuracy of info
Info may be biased

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16
Q

What is the marketing mix

A

Marketing mix made up of elements of 4ps Ie

Price, place, product and promotion

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17
Q

What does the element of product include?

A

New product development, packaging, branding and product life cycle

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18
Q

What is new product development?

A

You can make new versions of a product

You can improve product

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19
Q

What are the stages for new product development

A

Idea generation, idea screening, develop prototype, test marketing, commercialisation

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20
Q

What is idea generation

A

Firm gathers ideas about new product. New ideas can come from research surveys, comments on blogs, competitors

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21
Q

What is idea screening

A

Potential new products are screened by firm to see if product is viable

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22
Q

What is develop prototype

A

Firm will then develop prototype of product to see if it is a workable idea

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23
Q

What is test marketing

A

After firm develops a prototype they will test market it. Firm will launch product in small geographical area that matches profile of their typical consumers

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24
Q

What is commercialisation

A

Firm launches product to whole market. Timing very important as firm doesn’t want to launch their product at the same time as their competitors

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25
Q

What is the product life cycle

A

IGMSD

Introductory stage, Growth stage, Maturity stage, Saturation stage, Decline stage

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26
Q

What is the introductory stage

A

Product just launched and sales low. Profits low as well, but firm has to cover high advertising and R&D costs

27
Q

What is the growth stage

A

Customers return for repeat purchases and sales start to rise
Profits rise as well

28
Q

What is the maturity stage

A

Sales peak at this stage, many competitors in market. Little room for growth

29
Q

What is the saturation stage

A

Market full of competitors. No room for growth. Only way to increase sales - steal them from competitors. Sales dip slightly, form decided if product should stay in market or not

30
Q

What is decline stage

A

Product may go outta fashion or becomes obsolete. Sales eventually fall. Firms won’t invest in advertising in advertising or new packaging to revive sales of product. They will let product fall out of market

31
Q

What is the purpose of packaging?

A

To protect products from external environment.
It allows products to be transported to consumer
Can help customer tell the difference between brands
A lot of info can be put on packaging, saying if it contains nuts or dairy
Contains legal info
Nutritional info on packaging

32
Q

What is branding

A

Name, symbol, design of product that sets it apart from the competition

33
Q

What are the benefits of branding

A

Firms often able to charge high price which maximises profit
Product that has clear brand will be different from comp
Easier for firm to launch new extension to branded product
Branded products can have personality or values attached to them
Customers often loyal to branded goods which guarantees repeat sales

34
Q

What are the costs of branding

A

If celeb involved with brand misbehaves then brand will receive poor publicity
Costs firms thousands of £ to establish themselves as a brand
Sometimes brand so distinct that it is difficult to launch products that are different

35
Q

What are the different pricing techniques

A

Skimming price, penetration pricing, promotional pricing, premium pricing, competitive pricing, discrimination pricing,

36
Q

What is skimming price

A

Price is used for a new product. Product priced at HIGH level when launched after period of time price will be lowered

37
Q

What is penetration pricing?

A

Used for new product. Priced at LOW level when launched. After period of time it is then raised in price

38
Q

What is promotional pricing

A

Products priced at low level for short period of time to max sales or clear unsold stock

39
Q

What is premium pricing

A

Products priced at high value to give an impression of quality

40
Q

What is competitive pricing

A

When products priced at same level as competitors and use other factors to attract customers

41
Q

What is discrimination pricing

A

Price for SAME product is charged at different rate depending on time of day or age of customer

42
Q

What are the factors influencing pricing

A

Degree of competition - if there is a lot of competitors then prices are likely to be low
Cost of raw materials - materials used in production of product are high then price will be high
Government involvement - government can get involved in some markets, such as medicines, and set a price that firms cannot go over
Target audience - firm aiming product at group of customers with higher income, therefore prices might be higher

43
Q

What are the channels of disturbution?

A

Manufacturer to customer - direct selling
Manufacturer to retailer to customer - retailer function
Manufacturer to wholesaler to retailer to customer - wholesaler function

44
Q

Benefits of direct selling

A

Firm saves on overheads as they do not need to purchase a shop
Customer has direct feedback from manufacturer as regards to the product and stock availability

45
Q

Benefits of using retailer function

A

Retailer can demonstrate product in action
Retailer can display product in an attractive fashion that will encourage consumer to purchase
Allows customer to try product
Offers advice to consumer in matters such as medicines

46
Q

Benefits of using wholesaler function

A

Saves manufacturer from making lots of small deliveries thereby saving on admin and delivery costs
Save manufacturer from cost oh holding high stock levels of goods they have just produced
Manufacturer is not left with out dated stock especially if firm is selling food
Wholesaler can sell directly to customer if customer has an approved card
Wholesaler can demonstrate product to retailer, which is good if it is new

47
Q

What is the promotional mix made up of?

A

Advertising, into & out of pipeline promotions

Public relations

48
Q

What are the advantages of advertising in tv

A

Can target advert to reach viewers of show
Reaches global audience
New products can be demonstrated

49
Q

What are the disadvantages of advertising on tv

A

Expensive to make and show
Viewers channel surf
Message shirt lived
Target audience might not be watching

50
Q

Advantages and disadvantages of advertising in a billboard

A

Adv
Captures audiences while at traffic lights
High impacts image is of large size

Disadv
Can deteriorate due to weather and so image suffers
Can be vandilised and so again image is reduced

51
Q

Advantages and disadvantages of advertising by radio

A

Cheaper to advertise than tv
Can target advert to reach listeners of show

Disadv
Can’t show proud tams so have to rely on listeners imagination

52
Q

What are the promotion methods?

A 
Promotional pricing 
Dealer loaders 
Staff training 
Free samples
In store demos 
Credit facilities 
Competitions
53
Q

What is promotional pricing

A

To steal sales from a competitor or to respond to an ad campaign by a competitor eg buy one get one free

54
Q

What is dealer loaders

A

To encourage the supermarkets to stock your goods eg walkers

55
Q

What is staff training

A

To encourage staff to provide a better service or explain better features of a new product

56
Q

What are free samples?

A

To encourage customers to try a new product

57
Q

What are in store demos

A

To encourage customers to try a new product and to Research their responses to it

58
Q

What are credit facilities

A

Allows a customer to buy now and pay at a later date

59
Q

What are competitions

A

Often encourages repeat purchases

60
Q

What is ethical marketing

A

This is where firms conduct their marketing practices such as market research, product development and advertising in a morally responsible manner

61
Q

What are poor examples of ethical marketing

A

Obtaining market research information without the consumer agreeing to it
Selling on private information about customers
Companies agreeing to set an artificially high price for a product
Making false claims in an advert

62
Q

What are the advantages of being ethical

A

Firm gains good reputation and so customers are loyal
Ethical products can be priced at a high level and so profits may increase
New sources of finance
Firm avoids bad press by pressure groups

63
Q

What are the disadvantages of being ethical

A

Higher costs. Will raise firms costs and lower profits

Firm has to stick by its claims and will be closely monitored by pressure groups and consumers

64
Q

What is the use of a safe working practices

A

To show employee how to use a piece of machinery properly without being injured
To give employees places to eat
Giving employees bathrooms who need it
To reduce waste around workplace

Business (9 decks)

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